A major hospitality group has collapsed into administration, forcing venues to shut their doors and leaving scores of workers out of a job.
The sudden move marks the latest blow to Britain's struggling pub and restaurant sector.
Oakman Inns, a Berkhamsted-based chain that had operated for 18 years, entered administration on July 21. The collapse immediately triggered the closure of six sites and the loss of 159 jobs.
The company’s downfall highlights the mounting pressure on UK hospitality firms, many of which are battling falling footfall, rising food and energy costs, and steep wage bills.
Despite the blow, a rescue deal has salvaged much of the business. Administrators PwC confirmed that Upham Group Limited acquired 14 of the company’s venues, protecting 531 roles.
The acquisition by Upham Group effectively doubles the company's estate, expanding its reach from 14 to 28 establishments across southern England and into new territories.
The six pub that have closed are:
- Beech House, Watford, Hertfordshire
- Grand Junction Arms, Tring, Hertfordshire
- King's Head, Chipping Ongar, Essex
- Navigation Inn, Lapworth, Warwickshire
- Journeyman, Gerrards Cross, Buckinghamshire
- The George Inn, Ludlow, Shropshire
Kevin Todd, Upham's executive chairman, expressed enthusiasm about the deal: "We have been long-term admirers of the Oakman Inns pub estate and the quality of their team and their offer, ever since Peter Borg-Neal founded the group back in 2007."
PA | Popular British pub chain collapses
He added: "We look forward to welcoming the new team into our family and working together to create an exciting premium pub group, now with 28 fabulous locations."
The Hampshire-based Upham Group, which operates countryside inns across Winchester, Warminster and Ascot, will extend its geographical footprint into the Midlands and south-east through this acquisition.
Entrepreneur Borg-Neal established Oakman Inns in 2007, launching the company's first venue, the Akeman in Tring, before expanding across southern and central England.
The business grew to encompass approximately 30 rural and suburban establishments throughout Bedfordshire, Buckinghamshire, Oxfordshire and the Midlands, employing more than 1,600 people at its peak.
PwC described the company as an "operator of a high-quality portfolio of pubs and restaurants" that had built a substantial presence across multiple counties.
GETTY | The pub chain is one of the most popular in the country Recent years saw Oakman undertaking various strategic moves, including the sale of 10 freehold properties to Brunning & Price in May for a sum reportedly between £50 million and £100 million, and the disposal of two venues to McMullen's last November.
The pandemic dealt a severe blow to Oakman's operations, forcing temporary closures and imposing trading restrictions that necessitated substantial borrowing to maintain the business.
Ross Connock, joint administrator at PwC, outlined the sector's ongoing struggles: "The hospitality sector continues to face significant and persistent challenges, including a reduction in customer numbers, which has been driven by changing consumer habits and broader economic pressures."
He further noted: "In addition, operators are contending with rising operating costs, such as increased energy prices, higher food and beverage costs and wage inflation."
GETTY | There are six sites to shut immediately and 159 jobs will be cut
These compounding financial pressures ultimately proved insurmountable for the 18-year-old business, despite attempts to stabilise through asset sales and strategic restructuring in recent months.
Connock expressed regret about the closures: "It's regrettable that six trading sites were not included in the sale, resulting in 159 redundancies. Our team of employee specialists are providing support to those affected during this challenging time."
The businesses that have been taken over by Upham Group are:
- The Three Locks, Stoke Hammond, Buckinghamshire
- The Beech House, Amersham, Buckinghamshire
- The Beech House, Beaconsfield, Buckinghamshire
- The Beech House, Solihull, West Midlands
- The Beech House, St Albans, Hertfordshire
- The Betsey Wynne, Swanbourne, Buckinghamshire
- The Four Alls, Welford on Avon, Warwickshire
- The Kings Arms, Berkhamsted, Hertfordshire
- The Lost Boy, Farnham, Hampshire
- The Navigation Inn, Cosgrove, Northamptonshire
- The Old Post Office, Wallingford, Oxfordshire
- The Penny Farthing, Berkhamsted, Hertfordshire
- The Red Lion, Water End, Hertfordshire
- The Woburn, Woburn, Bedfordshire